CDs outstanding decline

Обзор облигаций 19.10.2015 Following last Wednesday's public holiday, the NBU offered 1-month and 3-month CDs on Thursday, selling a total of UAH17.37bn of CD at the tender, including UAH6.75bn of 14-day CDs, UAH2.00bn of 1-month and UAH1.50bn of 3-month CDs. All delayed demand due to the holiday was satisfied, causing a slight decline in interest rates. At the same time, total CDs outstanding fell UAH1.36bn to UAH58.03bn, while banks' correspondent accounts with the NBU rose UAH3.36bn to UAH26.21bn on Friday. Investment implications: The NBU satisfied demand for CDs and decreased cut-off interest rates for 1-month and 3-month CDs, resulting in the weighted average interest rates declining 11-12bp versus the previous week. Liquidity in the banking sector lengthened in maturity, as anticipations of declining short-term rates softened, thus supporting banks investments in longer term CDs. Back to contents